Question: The Jamaican Ginger Bread Company is adding a new assembly line at a cost of 8.5 million. The firm expects the project to generate cash

The Jamaican Ginger Bread Company is adding a new assembly line at a cost of 8.5 million. The firm expects the project to generate cash flows of 2 million, 3 million, 4 million and 5 million over the next four years. Its cost of capital is 16 per cent. Calculate NPV and IRR for the project.

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